Pound v. Pound

67 N.W. 200, 64 Minn. 428, 1896 Minn. LEXIS 159
CourtSupreme Court of Minnesota
DecidedMay 19, 1896
DocketNos. 9779-(33)
StatusPublished

This text of 67 N.W. 200 (Pound v. Pound) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pound v. Pound, 67 N.W. 200, 64 Minn. 428, 1896 Minn. LEXIS 159 (Mich. 1896).

Opinion

START, C. J.

The plaintiff is the administratrix of the estate of her husband, George C. Pound, deceased, and, as such, brought this action against the defendant, James H. Pound, the father of deceased, for the conversion of a job-printing plant. The complaint charges that George C. Pound, on January 25, 1894, .the day of his death, was the owner, and entitled to the possession, of the plant, and that the defendant, on March 15, 1894, converted the same to his own use. The answer denies that George C. Pound was the owner of, or entitled to the possession of, the personal property in question, and affirmatively alleges that the defendant is the absolute owner thereof. The plaintiff had a verdict for $5,000, and from an order denying his motion for a new trial, the defendant appealed.

The most important of the defendant’s assignments of error are involved in the question, is the verdict sustained by the evidence? Our conclusion is, after a careful consideration of the record, that [429]*429the question must be answered in the negative. The trial court, in denying the motion for a new trial, said, in reference to this question: “To establish this contention, the plaintiff relies mainly upon circumstances and the declaration of plaintiff’s decedent after the sale. It has been matter of grave doubt in my mind whether these are sufficient to justify the verdict, but, giving wide latitude to the province of the jury, and inasmuch as I think substantial justice has been done, I have concluded to let the verdict stand.” It would seem, from this statement, that the learned trial judge, in reaching his conclusion, gave to the declarations of George O. Pound an importance they were not entitled to. We shall refer to them as we proceed.

It is important, at the outset, to keep in mind just what the issues were. This action is not one to recover property transferred by the deceased to defraud his creditors, or in fraud of the marital rights of his wife, or for an accounting for property transferred as security, but the plaintiff bases her right to recover upon the proposition that her intestate was the absolute owner of the property at the date of his death. The trial judge stated correctly the nature of the plaintiff’s claim to the jury in these words: “The plaintiff has the same rights as George O. Pound himself would have, — no more, and no less, — and cannot recover in this case unless her intestate, George O. Pound, could have recovered, had he himself brought suit.” The practical question then is, would the evidence in this case support a verdict in favor of George O. Pound if he was alive, and had brought this action. Keeping. in mind this practical form of the question, let us briefly examine the evidence.

The undisputed evidence tends to show that in the latter part of March, 1890, George C. Pound was the owner of the property in question, subject to a mortgage to his father, the defendant, for $2,000 and interest. His total indebtedness to his. father and brother, including interest, was $3,200. He was also owing for a printing press $1,800, and had other debts. He was at this time having trouble with his wife. Such being the situation, he telegraphed to his father, who lived at Detroit, Michigan, that he was in trouble, and asked him to come to St. Paul. The defendant came, and such negotiations were had between them that on March 27, 1890, the son transferred the plant to his father by a bill of sale, [430]*430for the consideration of $6,000, as recited therein. By the terms of the sale the father assumed and agreed to pay all of the indebtedness of the business, and he executed to the son an agreement, ■stating that the consideration of the purchase was $6,000, and the ■debts $5,878.96, and agreed to pay the debts, and, when the amounts thereof were definitely ascertained, to pay the balance in cash. A further agreement was executed between them, whereby the son agreed to carry on the business for the father, as manager, under the name of the “Pound Publishing Company,” at a salary of $25 per week. The bank account, the insurance, and the account books of the business were changed from “George C. Pound” to “Pound Publishing Co., James H. Pound, Proprietor.” Thereafter all business and accounts were with the Pound Publishing Company. Monthly statements of the business were sent to the father for about one year, when they were discontinued, at his request. There was further evidence tending to show that George C. Pound repeatedly stated, after the bill of sale was given, that his father was the Pound Publishing Company, and owned the business^ The ■defendant testified that the sale was an absolute one, and that he paid the debts of the business.

The claim of the plaintiff is that there was in fact no sale; that the title to the property never passed, and that it was never intended by the parties that the title should pass; that the whole transaction was merely colorable. The evidence relied on by the plaintiff to sustain this claim are the circumstances under which the bill of sale and change in the business were made, — such as the formalities, the publicity of the transaction, and the care taken in these respects, while there was no careful investigation by the defendant as to the amount and value of the plant before the bill of sale was made; also the inadequate consideration for the purchase. If the question here was whether the property was transferred to •defraud creditors, or as security for the amount due from the son to the father, the surplus to be held in trust for the son, such circumstances would be entitled to much probative forcé; but, upon the simple question whether there was ever any transfer of the legal title to the property for any purpose, no matter what, such circumstances fall very far short of being sufficient to set aside the formal written transfer of the property, and the other evi[431]*431dence on the part of the defendant. Suppose this action had been between George C. Pound, as plaintiff, against his father, to recover the value of this property, on the ground that he never transferred the title, and the evidence was the same as in this case, would any court sustain a verdict in favor of the plaintiff?

■But certain direct evidence was given on the trial to which much importance is attached by the plaintiff. It appears that, at or about the tirhe the bill of sale and the change in the business were made, the son assigned his life insurance policy to his father, who, after the son’s death, collected $3,000 thereon. This evidence was received over the objections and exceptions of the defendant. If the plaintiff’s case had been tried on the basis that there was in fact a transfer of the property to the father to secure him, and to hold any surplus for the son, and that the father had been paid, this would have been important evidence. But the plaintiff’s case, from the commencement until the evidence was closed, was tried on the basis that the title of the property never passed to the defendant for any purpose, or, in other words, that no sale in fact ever took place. The fact of the gift or transfer of the insurance policy, payable at the son’s death, could have little, if any, tendency to show that no title passed under the bill of sale. It also appears that on July 12, 1890, the son and his wife, the plaintiff, joined in a deed of certain real estate to the defendant, which was subject to a mortgage of $3,000, which the defendant has paid. The plaintiff, against the objection of the defendant, was permitted to show the value of the lot. This transaction occurred some three months after the bill of sale was made.

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Bluebook (online)
67 N.W. 200, 64 Minn. 428, 1896 Minn. LEXIS 159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pound-v-pound-minn-1896.